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UK GCSE 2006 : Foundation Tier, Business Studies Paper 2

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Centre Number 71 Candidate Number General Certificate of Secondary Education 2006 Paper 2 Foundation Tier G1202 Business Studies [G1202] THURSDAY 1 JUNE, AFTERNOON TIME 2 hours. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number in the spaces provided at the top of this page. Write your answers in the spaces provided in this question paper. There should be enough space for your answers. If you do require more space, you may complete your answers on the extra lined pages at the back of this booklet. Answer all four questions. INFORMATION FOR CANDIDATES The total mark for this paper is 105, including a maximum of 5 marks for quality of written communication. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. For Examiner s use only Question Number 1 2 3 4 QWC Total Marks G122F6 373 Marks 1 Examiner Only Kim is the Human Resources Manager in Blackston Ltd a factory in Ballygawley. She is responsible for all recruitment, selection, and training in the company. Blackston Ltd encourages team-working and believes it is very important that the workforce is multi-skilled and well motivated. Marks (a) What do the following terms mean? (i) Team-work _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Multi-skilled _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (b) Kim has to select three new employees for the company. Their jobs are described in the table. Complete the table, choosing the most suitable method of selection for each new employee from the list: Testing Curriculum Vitae Interview New Employee Method of Selection Secretary who has to list details of his/her education and experience Machinist who needs to prove he/she can work the machines Manager who needs to have good personal and communication skills G122F6 373 [1] [1] [1] 2 Remark (c) The Company plans to send the new manager to London on a management training course. What is the name given to this type of training? Examiner Only Marks Remark ______________________________________________________ [1] (d) Give details of one responsibility which an employer has during the selection process. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (e) Explain one reason why it is important that employees are highly motivated. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F6 373 3 [Turn over (f) Blackston Ltd is introducing the following methods of motivation for its staff. In the table, describe each method and state which type of employee each one suits best. Method Description Type of Employee Commission [2] [1] [2] [1] [2] [1] Piece Work Fringe Benefits G122F6 373 4 Examiner Only Marks Remark Examiner Only Most of the employees in Blackston Ltd belong to a Trade Union. Marks Remark (g) Describe two ways in which a Trade Union can help its members. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F6 373 5 [Turn over 2 Examiner Only Among the businesses in Banbridge are two supermarkets, three fashion stores, two video shops, a bookshop, a factory which manufactures furniture, and a garage which does motor repairs and sells petrol. (a) Choose the most appropriate pricing policy from the list for each business described in the table. Price Wars Cost Based Market Led Penetration Skimming Destruction Business Pricing Policy One of the video shops wants to charge the same price as the other shop The garage wants to cover its costs and make a small percentage profit One of the fashion stores has introduced a highly sought after range of jeans which no other shop has A new supermarket is opening in the town and is trying to gain a share of the market One of the video shops is trying to close down the other one The supermarkets keep cutting their prices of bread [1] [1] [1] [1] [1] [1] (b) If a business alters the prices of its goods, the demand for those goods usually changes. In each of the following examples, decide what you think would happen to the demand for the goods giving a reason. (i) The price of milk rises in one supermarket by 5p per litre. _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] G122F6 373 6 Marks Remark (ii) The price of eggs falls in all supermarkets. Examiner Only Marks Remark _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (c) State one way in which the work of the Office of Fair Trading (OFT) affects businesses. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (d) The bookshop in Banbridge sells many of its books via the Internet. Explain one advantage and one disadvantage for the bookshop of internet selling. Advantage _______________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] Disadvantage ____________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F6 373 7 [Turn over (e) The furniture factory in Banbridge sells much of its products abroad. The factory transports its goods by road and sea, using container lorries. Give one advantage and one disadvantage of containerised transport. Advantage _______________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] Disadvantage ____________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (f) The Product Life Cycle of a sofa made by the furniture factory in Banbridge is shown below. 1000 S A L E S 500 2003 2004 2005 YEAR 2006 (i) What stage of its Product Life Cycle has the sofa reached in 2006? __________________________________________________ [1] G122F6 373 8 Examiner Only Marks Remark (ii) Advise the furniture factory on two ways to extend the Product Life Cycle of the sofa. Examiner Only Marks Remark _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] G122F6 373 9 [Turn over 3 Examiner Only First Rate Foods Ltd is located in Cookstown and is a small-to-mediumsized company. The company prepares meals to freeze and sell in shops throughout Northern Ireland, and also provides lunches for some banks and offices in the town. First Rate Foods Ltd buys as much produce as possible from local farmers. (a) In the following table fill in the type of production for each industry. Industry Type of Production First Rate Foods Ltd [1] Farmers [1] Bank [1] (b) State which type of business organisation First Rate Foods Ltd is, and outline one important feature of this type of business organisation. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (c) First Rate Foods Ltd is a small-to-medium-sized company (SME). Explain what an SME is. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F6 373 10 Marks Remark (d) SMEs are very important to Northern Ireland. Why is this so? Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] There is another business called Classy Foods in Cookstown which does exactly the same type of work as First Rate Foods Ltd. The two businesses plan to join together to form one single company called First Class Foods Ltd . (e) Two of the following statements are true about the above situation. Select and tick the boxes beside the two true statements. You must tick only two boxes. This is external growth This is a takeover This is a merger This is a conglomerate This is internal growth [2] G122F6 373 11 [Turn over (f) The company is thinking of using the Just-in-Time method of production. Advise the company about two advantages it would gain by changing to this method. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (g) First Class Foods Ltd would also like advice on specialisation. Explain one way in which specialisation might benefit this company. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (h) (i) Name the law which states the responsibilities both employers and employees have in keeping the workplace safe. __________________________________________________ [1] (ii) Give details of one way in which First Class Foods Ltd is expected to keep the workplace safe. _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] G122F6 373 12 Examiner Only Marks Remark (iii) Give details of one way in which the company s employees are expected to keep the workplace safe. Examiner Only Marks Remark _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] G122F6 373 13 [Turn over 4 Examiner Only Jack is a sole trader who runs a small hardware shop in Coleraine. However Jack feels that his business would be more successful if he had additional capital and is considering both internal and external sources. (a) Give one advantage for Jack of being a sole trader. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (b) Give one disadvantage for Jack of being a sole trader. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F6 373 14 Marks Remark (c) Name, and explain, two internal sources of additional capital which would be suitable for Jack to use. Examiner Only Marks Remark 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (d) One external source of capital which Jack is thinking of using is Trade Credit. Explain one advantage and one disadvantage of Trade Credit. Advantage _______________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] Disadvantage _____________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F6 373 15 [Turn over An accountant had produced the following figures for Jack s shop for the year ending 31 December 2005: Sales Gross Profit Net Profit 87,500 56,900 35,400 (e) What is the name of the account where the Net Profit is worked out? ______________________________________________________ [1] (f) Using the space below, calculate the Gross Profit Percentage for Jack s shop for the year. [3] (g) Using the space below, calculate the Net Profit Percentage for Jack s shop for the year. [3] G122F6 373 16 Examiner Only Marks Remark (h) Jack thinks that his net profit is too low. Advise him on two ways of increasing his net profit. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] Quality of written communication G122F6 373 17 [Turn over Extra page if required ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122F6 373 18 Examiner Only Marks Remark Extra page if required ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122F6 373 19 Examiner Only Marks Remark SP (NF/KS) T15801/2

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